SEC Approves Sweeping Insider Trading Oversight Plan for 26 Exchanges
Published Date: 5/7/2026
Notice
Summary
The SEC just approved a new update to how 26 stock exchanges and regulators work together to catch and stop insider trading. This means these groups will share responsibilities more clearly and efficiently starting right away, helping keep the market fair without extra costs. If you trade or work with these exchanges, expect smoother oversight and quicker action against rule-breakers.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 3 costs, 1 mixed.
FINRA Is Assigned Insider‑Trading Oversight
On the Plan's Effective Date (SEC declared effective on May 4, 2026), FINRA will assume regulatory responsibility for surveillance, investigation, and enforcement of insider trading for Common FINRA Members with respect to NMS Stocks, regardless of which participating exchange the trading occurs on. The Plan relieves the other Participating Organizations of those allocated responsibilities.
Quarterly Fees Charged to Participating Organizations
FINRA will charge each Participating Organization a Quarterly Fee in arrears based on that organization's 'Percentage of Publicly Reported Trades' over three-month billing periods. If a Participating Organization's percentage of publicly reported trades for the period is less than 1.0%, the Quarterly Fee is $6,250 per quarter (a 'Static Fee').
FINRA Ownership of New Intellectual Property; Maintenance Fees
The Plan states FINRA will remain owner of its existing proprietary Intellectual Property (including the SONAR system) and any New IP created by FINRA; Participating Organizations irrevocably assign rights in such New IP to FINRA. FINRA will not charge fees for New IP but may charge fees for software maintenance on systems used to perform its duties.
Payment Defaults Can Lead to Termination
A Participating Organization may cancel participation with 180 days' written notice (subject to SEC approval). FINRA will invoice for Fees; a Participating Organization has 30 days from receipt to satisfy an invoice and 30 days from receipt of a Default notice to cure. If an organization Defaults on paying invoices more than three times in any rolling 24‑month period, FINRA may terminate the Regulatory Responsibilities it assumed for that organization.
Exchanges Must Forward Insider‑Trading Complaints to FINRA
If a Participating Organization receives a customer complaint relating to insider trading or conduct within FINRA's allocated responsibilities, the Participating Organization must promptly forward a copy of that customer complaint to FINRA.
Participating Orgs Must Make Personnel Available and Pay Travel
Each Participating Organization must make personnel available to FINRA to serve as testimonial or non‑testimonial witnesses as necessary for FINRA to fulfill the Regulatory Responsibilities; Participating Organizations must pay reasonable travel and other expenses when FINRA requires employees to serve as witnesses or provide assistance.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-12163 — The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222 — Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-13648 — Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Except Accounts Pursuant to Section 530A of the Internal Revenue Code From the Requirements of FINRA Rule 3210 (Accounts At Other Broker-Dealers and Financial Institutions)
FINRA is updating its rules to exclude certain accounts protected under a new tax law (Section 530A) from extra paperwork and approval steps. This change helps financial pros handle these special accounts more easily, starting right away with no extra costs. If you work with broker-dealers or financial institutions, this means smoother account management from now on!
2026-13713 — Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Partial Amendment No. 1 to Proposed Rule Change To Amend FINRA Rule 2210 (Communications With the Public)
FINRA wants to update its rules to let financial firms share predictions about investment returns when talking to the public, but only if they follow certain safety steps. This change affects anyone in the finance world who communicates about investments and aims to make info clearer and more honest. The SEC is reviewing these updates, with decisions and possible money impacts expected soon.
Previous / Next Documents
Previous: 2026-08993 — Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Consisting of Amendments to MSRB Rule G-20 To Revise the MSRB's Gift and Gratuities Requirements To Preserve Alignment With Amendments to FINRA Rule 3220 and To Make Certain Technical Amendments
Starting May 1, 2026, brokers, dealers, and municipal advisors need to follow updated rules about gifts and freebies to match new FINRA standards. The Municipal Securities Rulemaking Board cleaned up the language and made the rules clearer, so everyone’s on the same page. These changes don’t cost money but keep things fair and transparent in the municipal securities world.
Next: 2026-08995 — Center for Scientific Review; Notice of Closed Meetings
The Center for Scientific Review is holding several closed virtual meetings in June 2026 to review and decide on important health research grant applications. These meetings keep sensitive info private, protecting personal and trade secrets. Researchers applying for grants should note these dates as they impact funding decisions but don’t involve public attendance or extra costs.